Founders Podcast Episode #373: "Breakfast with Brad Jacobs + How To Make A Few Billion Dollars"
Host: David Senra
Guest: Brad Jacobs
Release Date: December 6, 2024
Introduction
In this compelling episode of Founders, host David Senra sits down for an enlightening breakfast discussion with Brad Jacobs, a seasoned entrepreneur renowned for building multiple billion-dollar enterprises. Drawing insights from Brad's life story and his book, How To Make A Few Billion Dollars, Senra distills seven invaluable lessons applicable to entrepreneurs and professionals across various fields.
1. The Power of Surrounding Yourself with Top Talent
Brad Jacobs emphasizes the critical role of recruiting exceptionally talented individuals. As Senra highlights, Brad believes that "there's no substitute for smarts" (00:00). This philosophy mirrors Steve Jobs' perspective on assembling extraordinary teams, noting that a small group of A-players can outperform a much larger team of average performers.
Notable Quote:
"There's no substitute for smarts." – Brad Jacobs (00:00)
Ramp, Brad's company, exemplifies this approach by maintaining an elite technical team, with only 0.23% of applicants being hired over the past year. This commitment ensures that clients receive top-tier service, optimizing their financial operations efficiently.
2. Lifelong Learning: Going to School on Everybody
Brad underscores the importance of continuous learning and being a "sponge," absorbing knowledge from various sources. This trait is consistent among successful founders like Jeff Bezos and Amancio Ortega, who relentlessly seek insights to stay ahead.
Notable Quote:
"I'm obsessive when learning about an industry." – Brad Jacobs (05:37)
Brad's extensive research before entering any industry—ranging from reading journals to interviewing experts—illustrates his dedication to understanding market trends deeply, a strategy that has been pivotal in his success.
3. Clear Thinking and Simplified Communication
Clarity in thought and communication is paramount. Brad practices refining his ideas to make them easily understandable, facilitating better decision-making and team alignment. This clarity is echoed by Warren Buffett, who prioritizes reputation over short-term gains.
Notable Quote:
"A small team of A-plus players can run circles around a giant team of B and C players." – Brad Jacobs (14:35)
Effective communication ensures that Brad's strategic vision is consistently conveyed across his organizations, fostering a unified and motivated workforce.
4. Leveraging Big Trends and Investing in Technology
Identifying and capitalizing on major industry trends is a cornerstone of Brad's strategy. He meticulously researches emerging trends and integrates advanced technologies to maintain a competitive edge.
Notable Quote:
"If you want to make a lot of money in almost any industry, you have to plan to heavily invest in tech." – Brad Jacobs (07:37)
From revolutionizing oil brokerage with proprietary databases to optimizing waste management through tech-driven truck routing, Brad's investments in technology have consistently yielded substantial returns.
5. Paying It Forward: Mentorship and Supporting the Next Generation
Brad attributes much of his success to mentorship, notably from Ludwig Jesselson, and believes in nurturing future entrepreneurs. By providing guidance and opportunities, he fosters a culture of continuous improvement and generosity.
Notable Quote:
"As much as you can, pay it forward and help the next generation." – Brad Jacobs (16:01)
This ethos not only strengthens the entrepreneurial ecosystem but also ensures the sustainability of innovative practices across industries.
6. Embracing Eccentricities and Authenticity
Authenticity and embracing one's unique traits are vital for personal and professional growth. Brad encourages being genuine, as it fosters stronger relationships and a more positive work environment.
Notable Quote:
"People love authenticity way more than they love perfection." – Brad Jacobs (15:21)
By being true to himself, Brad creates an open and inclusive atmosphere within his companies, enhancing team cohesion and morale.
7. Building and Maintaining Relationships: Reputation is Everything
Strong relationships and a solid reputation are indispensable assets. Brad echoes Warren Buffett's belief that while financial losses can be managed, a tarnished reputation is irreparable.
Notable Quote:
"Success lies not in the elimination of problems, but in the art of creative, profitable problem solving." – Brad Jacobs (31:19)
Through consistent, ethical business practices and valuing long-term relationships over short-term gains, Brad ensures his ventures are trusted and respected in the market.
Conclusion
Brad Jacobs' journey, as discussed in this episode, offers a blueprint for aspiring entrepreneurs and business leaders. From assembling elite teams and embracing lifelong learning to leveraging technology and maintaining unwavering integrity, Brad's insights are both practical and profound. His commitment to fostering relationships and nurturing future talent underscores the holistic approach required for sustained success.
Final Thought:
"The great majority of the tens of billions of dollars of value that my teams and I have created have flowed outside of my companies. I am extremely proud that our company could be counted on to create value." – Brad Jacobs (89:03)
For those looking to delve deeper into Brad's strategies and philosophies, How To Make A Few Billion Dollars comes highly recommended as an essential resource.
References:
- Founders Podcast Episode #373 Transcript
- How To Make A Few Billion Dollars by Brad Jacobs
- Insanely Simple by Ken Segall
- Confessions of an Advertising Man by David Ogilvy
- Peter Thiel's philosophies on first principles
- The Score Takes Care of Itself by Bill Walsh
Note: Timestamps correspond to key segments within the provided transcript excerpt.